Construction Partners Builds Momentum With Texas Expansion

Core Insights - Construction Partners, Inc. (CPI) has completed the acquisition of eight hot-mix asphalt plants from Vulcan Materials Company, enhancing its operations in the Houston area [1][2][8] - The acquisition aligns with CPI's strategy to expand its geographic footprint in Texas and improve its operational capabilities [2][3] - CPI reported a record project backlog of $2.94 billion, reflecting a 58.1% year-over-year increase, ensuring strong revenue visibility for the upcoming fiscal year [5][8] Company Operations - The acquired asphalt plants will be integrated into Durwood Greene Construction Co., which CPI had previously acquired in August 2025 [2] - The acquisition not only adds new plants and equipment but also skilled workers who align with CPI's values of safety, quality, and customer service [2] - Management is focused on long-term growth through both organic expansion and selective acquisitions, maintaining a disciplined balance sheet [6] Market Position - CPI's stock has experienced a 71.1% increase over the past year, significantly outperforming the Zacks Building Products - Miscellaneous industry's decline of 7.5% [7] - The company is well-positioned for continued growth in 2025, supported by strong public infrastructure funding in the Sunbelt region [4][7] - Approximately 80% to 85% of CPI's expected revenue for the next 12 months is secured through its project backlog, providing strong visibility into fiscal 2026 performance [5]